SUPPLY CHAIN MANAGEMENT ASSIGNMENT
Submitted by,
B. Karthik Kumar
Reg.no - 1413024
Supply chain challenges in Indian Scenario
1. Globalization of manufacturing operation
Manufacturing in Global Operations make’s very much difficult in selecting the suppliers around the network. One of the biggest challenges that Manufacturing companies are facing is high supply chain cost. In order to satisfy their customers price expectations, companies opted to relocate their manufacturing facilities to low cost countries around the world in an effort to reduce direct and indirect costs.
2. Safety and quality products
Since the demand is increasing day by day due to increase in population around the world, The Manufacturers have to produce
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The logistics industry also depends on the timeliness in which products are delivered to a destination.
Logistics forms an important part of the supply chain and involves the planning, implementation, and effective forward and reverse flow of goods, services, and related information from origin to recipient.
Logistics management is comprised of materials management, channel management, physical distribution, and supply chain management. It also includes the warehouse management system which takes control of stocks, and streamlines the movement of goods in the storage units.
Increased globalization in manufacturing and other technological advancements has made companies focus more on core activities, and thus logistics activities have been outsourced as a cost-effective solution.
In the case of India, the growing economy now requires a boost in its logistics services to keep the goods flowing at an increasing rate. The logistics field is now estimated at a value of more than $US14 billion, with further growth envisioned. Logistics-related services in India encompass transportation of goods by air, land, waterway, and
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Carbon Credit
A permit that allows the holder to emit one ton of carbon dioxide. Credits are awarded to countries or groups that have reduced their green house gases below their emission quota. Carbon credits can be traded in the international market at their current market price.
How to Implement in Retail Supply Chain?
Through RFID
RFID tags can be used as certificates for carbon credits. For example, when sellers want to attach carbon offsetting credits to items, they place RFID tags on them that represent the credits for the items. Therefore, purchasers, who buy the items, tear the RFID tags from them and return the tags to the sellers (or the stakeholders of the credits). When the sellers receive the RFID tags from the purchasers, they transfer the credits to any accounts for payments that the purchasers specify.
It involves seven steps which are
1. A seller places an RFID tag on an item (or a volume of items) if the item has no
Increase in customer satisfaction- constant supply of the products ensures there is no deficit and creates a clientele base that has a well structured and satisfied market.
There has been significant technological advancements over the past few decades that have revolutionized the way we live and conduct business. Radio Frequency Identification, or RFID is an example of an electronic data interchange network that has helped shape the global world in which we live. The applications of RFID technology has impacted the military, health industries, supply chain management, logistics and agriculture. There is a vast array by which RFID technology is used around us on a daily basis without us even realizing it.
The innovation of the RFID chip or the Radio Frequency Identification has been a critical piece of technology that has been around since the early/mid 20th century (est 1938). Functions of a radio frequency identification (RFID) tagging system involves a tag and a reader. When scanned, the antenna within the tag picks up the radio wave and sends a response back to the reader.
It is extremely important that not affect the goal of the company. That being so, the time available for a restrictive resource needs to be optimised, either avoiding the production of defective parts, from the vendors of different companies whose products are on the shelf of the Target
...pital resources like distribution vehicles and storage warehouses should be outsourced to help reduce the high cost of operation which in turn can lead to reduction of its products price. The company should concentrate on product development and evolution and delegate distribution roles to outsourced firms. Such initiatives have worked well in the new Indian market and should be implemented in other areas.
Radio frequency identification (RFID) is a computerized ID innovation that uses radio recurrence waves to exchange information between an onlooker and things that have RFID gadgets, or tags, joined. The tags hold a microchip and receiving wire, and work at universally distinguished standard frequencies. Barcodes are much smaller, lighter and easier than RFID but RFID offers significant advantages. One major advantage of RFID is that the innovation doesn't oblige any observable pathway the tags could be perused as long as they are inside the range of the spectator, whereas in barcodes in order to read the barcode the barcode scanner should close around 10-15 fts. In RFID data, for example, part and serial numbers, assembling dates and support history is put away on the tags and catches which help in maintenance of equipments. RFID technology as high value for asset management and inventory systems
Rao, K., and Young, R. R. (1994) Global supply chains: Factors influencing outsourcing of logistics functions. International journal of physical distribution and logistics management. Vol. 24. No. 6.
It is suggested for any organization to review, reassess any existing supply chain management or any delivery techniques, before developing a new supply chain method so that any exposure to high risk of failure is reduced. Somerset as a company taken advantage of outsourcing and transferred it product manufacturing to China leveraging low cost labor and raw material. The labor cost and other cheap material reduce Somerset overhead cost, but there is always the risk of not delivering product on time due to the foreign country political climate, change in tax and tariff and local
RFID has taken strides from being a far off solution to becoming a mainstream application that helps speed the handling of manufactured goods and materials. RFID is an identification and tracking tool for a product using radio waves. It uses a microchip and a printed antenna that can be then packaged in several different forms such as a label or embedded between layers of a carton. These labels are then used to identify the manufacturer, product category and the RFID enables this identification from a distance and unlike earlier bar-code technology, it does so without requiring a line of sight. (Finkelzeller)
Logistics exists to satisfy customer requirements by facilitating relevant manufacturing and marketing operation. The main responsibility of logistic is the geographical positioning of raw materials, work in process and finished inventories at the lowest possible cost.
Outbound logistics: They are made up of centralized logistic centers to promote efficiency, global network, reduced emission of CO2 by 22% to ensure ecological sustainability and lastly to improve customer service.
RFID, or radio frequency identification, is the new system that is replacing the use of barcodes. RFID tags allow users to more quickly obtain information from the object that the RFID tag identifies (Evans, 2012, p. 190). RFID tags are more helpful and will eventually replace barcodes entirely because they allow the user to scan the object without physically touching or optically reading anything on it. Rather than reading an identification number that is then looked up in a database, it is possible to gather information directly from the tag (Bonsor).
Zanjirani F., Rezapour, S. & Kardar, L. (2011) Logistics operations and management concepts and models, 1st ed. London ; Elsevier.
The receiving process is the first step in a warehouse process. This may seem boring if the concept is still perceived as a clerk standing with a clip board and manually counting each piece of material as it comes in the door. Today’s technology used in the process of receiving, storing and shipping goods through bar code scanning of each pallet of goods as it enters the warehouse. [1,8] Another method used in the receiving process is a system known as Radio Frequency Identification (RFID). [1,6] With this method the there is no need for a receiving clerk’s presents when goods arrive. This process allows the entire pallet contents scanned as it passes through the door via the RFID chip secured to the pallet.
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.